Problem with LGPS AVCs with Prudential

Dizzyb99

I have a LGPS and have been looking to take out an AVC. I have approx £20,000 lump sum to put in using last years allowance and have at least 600/ month, possibly increasing.
I am hoping to retire at 59 (in 2 years) and am really just looking at making the most of the tax allowance and the TFLS.
I have  followed this thread for the last 12 months and hesitated to set this up but I can't see things getting any better and am worried that I am wasting time.
I guess I am just looking for some words of wisdom, reassurance or other suggestions as I am not particularly clued up with pensions and am incredibly risk adverse.

collins74

Dizzyb99 - I really would not let the service of the Prudential put you off. Despite the issues I have faced with them, things have improved and saving in this way with it all back as a potential TFLS is unique to the LGPS as far as I know.  

You don’t have long to retire, so I would be looking to max out as much as poss into your AVC as you don’t have to wait long to get it back.

 I have around 13 to 15 years to retirement (assuming health and job security etc doesnt change) and my AVC is the cornerstone of building up my cash savings for when I come to retire - some of the appeal to me is not being able to touch the AVC until I retire. I have put some quite sizeable contributions in at times and the service is not putting me off at all.

If your Council runs the scheme as salary sacrifice then there is an even greater argument to sign up ASAP and don’t forget the National Insurance hike that we face in April - more stashed away in a shared cost LGPS AVC is less National Insurance to pay.

bioboybill

Dizzyb99, despite the shocking service the money does go in eventually, so don't be put off. I have been putting away £600 a month, and next month it's going up to £1350 a month, as I'm in what I hope is my final year at the grindstone.

MX5huggy

@Dizzyb99 go for it, they are just slow things get resolved eventually. If you start now don’t expect a payment to come out of March’s pay packet but April is likely. 

Thrugelmir

MX5huggy said:

@Dizzyb99 go for it, they are just slow things get resolved eventually. If you start now don’t expect a payment to come out of March’s pay packet but April is likely. 

Cut-off for payroll processing is often far earlier than people imagine.  

OldBeanz

As the LGPS is a net pay agreement you can only claim tax back on taxable income i.e. unlike a SIPP where the equivalent of BR tax relief is claimed on the full amount from the tax man. 

Dizzyb99

Thank you all for your replies, they are really helpful and I will bite the bullet and get moving on it.
What would have been my last 12 months contributions were stashing up nicely ready to be transferred in when I opened it, until I had to lend it to my son for a new car, so the sooner I can get it where it can't be touched the better .

Old Beanz, I may have a substantial inheritance in the next few years and will certainly look into a SIPP should this be the case.

Thank you all again, your replies have been really appreciated.

collins74

I’ve just heard from the Prudential re my complaint over online access and issues I have faced when they migrated to their new system.  They have upheld the complaint and told me to get back in touch and they will be able to resolve things via their helpline.  They have also said they will be sending me a cheque for £450.  

My wife who is in the Teachers AVC with Prudential has a complaint in over their failure to reduce down her AVC contributions last month and this request is still outstanding.  We are waiting for them to respond to her complaint.

bioboybill

I received £75 for my recent complaint after two previous payments of £500 each. What a way to run a business!

OldBeanz

collins74 said:

...

My wife who is in the Teachers AVC with Prudential has a complaint in over their failure to reduce down her AVC contributions last month and this request is still outstanding.  We are waiting for them to respond to her complaint.

They told me that if the changes aren't made then that is nothing to do with them as my wife may have subsequently changed the amount by going (in)directly through her pay office. Needless to say our LGPS authority is not convinced of the merits of that concept and the Pension Ombudsman is presently working out who should be doing what.